Measuring What Follows Multi-Bar Candlestick Patterns
Summary
This indicator lets users define a sequence of up to ten bar types, including inside, outside, up, down, and pin bars. It identifies occurrences of the selected sequence using changes in highs and lows and, for pin bars, the candle body and wick proportions. A separate mode reports statistics across bar types rather than conditioning them on a chosen pattern.
After a detected sequence, the tool counts the next bar’s type and range relative to average true range, then displays counts and percentages in a table. This provides a descriptive way to explore what price bars tend to follow a selected setup. The script does not report forward returns, trade outcomes, or statistical significance, and its statistics are based on the chart’s available history. Pattern frequencies alone cannot establish an exploitable edge; results can vary with market, timeframe, sample size, and the chosen pattern definitions.
Key ideas
- Users can specify a sequence of up to ten bar categories to detect.
- Bar types are defined from relative highs and lows, with pin bars also using body and wick proportions.
- The tool records the next bar’s category and whether its range exceeds multiples of ATR.
- It displays counts and percentages for detected sequences or for all-bar statistics.
- Descriptive frequencies do not show forward returns or prove statistical significance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.